Tsubakimoto Chain Co. (6371) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

OSG Corp. (6136)

Fuji Corp. (Machinery)

Makino Milling Machine Co., Ltd.

Okuma Corp.

Tsubakimoto Chain Co.

Fujitec Co., Ltd.

Tokyo Seimitsu Co., Ltd.

Takasago Thermal Engineering Co., Ltd.

Fujitsu General Ltd.

The Japan Steel Works Ltd.

Organo Corp.

Why is Tsubakimoto Chain Co. ?

Poor Management Efficiency with a low ROE of 6.98%

The company has been able to generate a Return on Equity (avg) of 6.98% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 22.65% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.98% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 22.65% of over the last 5 years

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 4,328.77
DEBT-EQUITY RATIO (HY) Highest at -9.62 %
INTEREST(Q) Highest at JPY 212 MM

With ROE of 8.83%, it has a very attractive valuation with a 1.06 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 22.84%, its profits have risen by 6.5% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

The stock has generated a return of 22.84% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tsubakimoto Chain Co. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tsubakimoto Chain Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tsubakimoto Chain Co.

22.84%

1.22

28.70%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.68%

EBIT Growth (5y)

22.65%

EBIT to Interest (avg)

65.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.96

Tax Ratio

18.36%

Dividend Payout Ratio

27.05%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

9.55%

ROE (avg)

6.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.06

EV to EBIT

10.92

EV to EBITDA

6.51

EV to Capital Employed

1.07

EV to Sales

0.84

PEG Ratio

1.04

Dividend Yield

ROCE (Latest)

9.79%

ROE (Latest)

8.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 29,436 MM

ROCE(HY)

Highest at 10.81%

CASH AND EQV(HY)

Highest at JPY 165,529 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.74 times

NET SALES(Q)

At JPY 85,050 MM has Grown at 30.21%

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,328.77

DEBT-EQUITY RATIO (HY)

Highest at -9.62 %

INTEREST(Q)

Highest at JPY 212 MM

EPS(Q)

Lowest at JPY 42.2

Here's what is working for Tsubakimoto Chain Co.

Operating Cash Flow

Highest at JPY 29,436 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

At JPY 85,050 MM has Grown at 30.21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 165,529 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.74 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Tsubakimoto Chain Co.

Interest

At JPY 212 MM has Grown at 40.4%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,328.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 212 MM

in the last five periods and Increased by 40.4% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY 42.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -9.62 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio